Jun 30, 2021
As you may be aware, there are some changes coming with the way the European Union (EU) manages Value Added Tax (VAT) that should broadly be beneficial for anyone shipping items into and across Europe.
From 1 July 2021, there will be significant changes to the European Union’s VAT rules applying to the shipment of goods into the EU. This will primarily target B2C imports.
Please note that the following details do not constitute tax, legal, or other professional advice and must not be used as such. It is the sole responsibility of all AOP+ users to comply with all legal and sales tax requirements for issuing sales tax or VAT invoices in respect to your transactions. If you need professional support you can talk to our partner Launchese.com
What the hell is IOSS?
New €150 VAT threshold
Previously, sellers shipping goods to EU buyers valued at €22 or less were exempt from VAT. Now, that threshold has been removed.
Starting 1 July 2021, all imports up to €150 will be subject to VAT, and sellers have the option to collect VAT on low-value consignments at the point of sale. Regular duty and tax rates will apply to anything above that. The delivery address will determine the specific VAT rate.
Launch of the Import One-Stop Shop (IOSS) platform
The EU is also launching an Import One-Stop Shop (IOSS) platform to simplify the declaration and the payment of VAT for B2C imports up to a value of €150.
This optional platform requires you to register with a single EU Member State to manage your sales VAT throughout the EU, removing the need to register for VAT in every country you are selling goods to.
Registering for the IOSS platform is not obligatory and you can continue to declare and pay VAT on EU imports as you do today.
How IOSS will work on AOP+?
Shopify is working on adding IOSS number field on their store settings. Please reach their support for the launch date. Shopify is not a marketplace so they won’t collect VAT for your EU orders, you are responsible for that part.
ETSY, as a marketplace, will provide you with their own IOSS number. You must share Etsy’s IOSS number (which can be found under Orders & Shipping in Shop Manager), directly with AOP+, (Go to AOP+ > Profile) and you must not use it for any other purpose. Never write this number on your packages.
The shipping carrier should submit this information electronically. This helps to ensure that your buyer won’t be charged VAT twice.
Please note, AOP+ will continue to ship DDU (Delivery Duty Unpaid) for all international shipments if you do not provide IOSS.
If you like to learn more about IOSS please read this blog post by Launchese.
I will report back to you all regularly. If you have any questions, please email us at [email protected]
Uygar from AOP+